Euro edges back against dollar at $1,4257

Euro against dollar The European single currency rose against the dollar Tuesday after data showing increasing inflation pressures across the eurozone. The euro climbed to $1.4257 in London morning trade from $1.4236 late in New York on Monday.
Against the Japanese currency, the dollar fell to 82.42 yen from 82.66 yen on Monday.
The euro had slumped Monday on concerns over the eurozone debt crisis and after the markets were roiled by ratings agency Standard & Poor's decision to downgrade its outlook on US government debt.
Fresh jitters over Greece turned up the heat on Europe's simmering debt crisis amid growing speculation one of the 17-nation eurozone's most troubled economies will have to restructure its debt.
Eurozone cost pressures were meanwhile in focus Tuesday as a closely-watched growth indicator showed the rate of inflation for eurozone goods and services raced towards an all-time high in April.
Prices charged by firms surveyed showed "the largest monthly jump since the all-time high seen during the oil price peak of 2008," said Chris Williamson, chief economist with London-based researchers Markit.
Figures out at the end of last week had already showed eurozone inflation gaining "alarming" momentum, leaving analysts tipping a sharper rise in interest rates by the European Central Bank.
The annual rate of inflation across the eurozone hit 2.7 percent in March -- and 3.1 percent for the full, 27-state European Union, including non-euro Britain and Poland.
On Tuesday, sovereign debt worries were encouraging risk aversion, with the yen the beneficiary amid concerns about the dollar and euro.
Standard & Poor's move to cut its outlook on US government debt has thrown the spotlight on the fiscal challenges faced by the world's biggest economy as traders mull the possibility of the US losing its top 'AAA' rating.
"Even though the US has the world?s largest and most diversified economy as well as the world?s reserve currency, she is also an enormous net borrower on the international capital markets," noted research group Capital Economics.
The US is "not a net lender like Japan who can draw on a huge pool of domestic savings to finance her government?s yawing fiscal deficit," it said.
In London on Tuesday, the euro changed hands at $1.4257 against $1.4236 late in New York on Monday, at 117.52 yen (117.67), £0.8768 (0.8752) and 1.2790 Swiss francs (1.2756).
The dollar stood at 82.42 yen (82.66) and 0.8969 Swiss francs (0.8961).
The pound was at $1.6261 (1.6259).
On the London Bullion Market, the price of gold edged up to $1,494.02 an ounce from $1,493 late Monday, when it hit a record high $1,497.90 thanks to its status as a safehaven investment in troubled times.